A process of preparing lithium nickel oxide as a positive electrode active material comprising: dissolving a water-soluble lithium compound and a water-soluble nickel compound in water to prepare a homogeneous aqueous solution; co-precipitating, from the aqueous solution, a lithium salt and a nickel salt which are slightly soluble in water; isolating the resulting co-precipitate and calcining the co-precipitate to obtain lithium nickel oxide.